COMPUTER-AIDED DESIGN, ENGINEERING, AND MANUFACTURING Systems Techniques And Applications THE DESIGN oF MANUFACTURING SYSTEMS VOLUME V © 2001 by CRC Press LLC COMPUTER-AIDED DESIGN, ENGINEERING, AND MANUFACTURING Systems Techniques And Applications VOLUME Editor CORNELIUS LEONDES Boca Raton London New York Washington, D.C. CRC Press THE DESIGN OF MANUFACTURING SYSTEMS V This book contains information obtained from authentic and highly regarded sources. Reprinted material is quoted with permission, and sources are indicated. A wide variety of references are listed. Reasonable efforts have been made to publish reliable data and information, but the author and the publisher cannot assume responsibility for the validity of all materials or for the consequences of their use. 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Trademark Notice: Product or corporate names may be trademarks or registered trademarks, and are used only for identification and explanation, without intent to infringe. © 2001 by CRC Press LLC No claim to original U.S. Government works International Standard Book Number 0-8493-0997-2 Printed in the United States of America 1 2 3 4 5 6 7 8 9 0 Printed on acid-free paper Library of Congress Cataloging-in-Publication Data Catalog record is available from the Library of Congress. Preface A strong trend today is toward the fullest feasible integration of all elements of manufacturing, including maintenance, reliability, supportability, the competitive environment, and other areas. This trend toward total integration is called concurrent engineering. Because of the central role information processing technology plays in this, the computer has also been identified and treated as a central and most essential issue. These are the issues that are at the core of the contents of this volume. This set of volumes consists of seven distinctly titled and well-integrated volumes on the broadly significant subject of computer-aided design, engineering, and manufacturing: systems techniques and applications. It is appropriate to mention that each of the seven volumes can be utilized individually. In any event, the great breadth of the field certainly suggests the requirement for seven distinctly titled and well-integrated volumes for an adequately comprehensive treatment. The seven volume titles are: 1. Systems Techniques and Computational Methods 2. Computer-Integrated Manufacturing 3. Operational Methods in Computer-Aided Design 4. Optimization Methods for Manufacturing 5. The Design of Manufacturing Systems 6. Manufacturing Systems Processes 7. Artificial Intelligence and Robotics in Manufacturing The contributors to this volume clearly reveal the effectiveness and great significance of the techniques available and, with further development, the essential role that they will play in the future. I hope that practitioners, research workers, students, computer scientists, and others on the international scene will find this set of volumes to be a unique and significant reference source for years to come. Cornelius T. Leondes Editor © 2001 by CRC Press LLC 1 Long-Range Planning of Chemical Manufacturing Systems 1.1 Introduction 1.2 The Long-Range Planning Problem General Formulation 1.3 Deterministic Models An MILP Model • Extensions of the MILP Model 1.4 Hedging against Uncertainty Sources and Consequences of Uncertainty • Fuzzy Programming • Stochastic Programming • Fuzzy (FP) vs. Stochastic Programming (SP) 1.5 Conclusions 1.1 Introduction Recent years have witnessed increasingly growing awareness for long-range planning in all sectors. Companies are concerned more than ever about long-term stability and profitability. The chemical process industries is no exception. New environmental regulations, rising competition, new technology, uncertainty of demand, and fluctuation of prices have all led to an increasing need for decision policies that will be ‘‘best” in a dynamic sense over a wide time horizon. Quantitative techniques have long established their importance in such decision-making problems. It is, therefore, no surprise that there is a considerable number of papers in the literature devoted to the problem of long-range planning in the processing industries. It is the purpose of this chapter to present a summary of recent advances in this area and to suggest new avenues for future research. The chapter is organized in the following manner. Section 1.2 presents the long-range planning problem. Section 1.3 discusses deterministic models and solution strategies. Models dealing with uncertainty are discussed in Section 1.4. Finally, some recommendations for future research and concluding remarks are presented in Section 1.5. 1 Address all correspondence to this author (e-mail: nikos@uiuc.edu). Shabbir Ahmed Georgia Institute of Technology Nikolaos V. Sahinidis 1 University of Illinois at Urbana-Champaign © 2001 by CRC Press LLC . COMPUTER-AIDED DESIGN, ENGINEERING, AND MANUFACTURING Systems Techniques And Applications THE DESIGN oF MANUFACTURING SYSTEMS VOLUME V © 20 01 by CRC Press LLC COMPUTER-AIDED DESIGN, ENGINEERING, AND MANUFACTURING Systems. Computer-Integrated Manufacturing 3. Operational Methods in Computer-Aided Design 4. Optimization Methods for Manufacturing 5. The Design of Manufacturing Systems 6. Manufacturing Systems Processes 7 Leondes Editor © 20 01 by CRC Press LLC 1 Long-Range Planning of Chemical Manufacturing Systems 1. 1 Introduction 1. 2 The Long-Range Planning Problem General Formulation 1. 3 Deterministic